Hotel Revenue Management Case Study in Mallorca

Tucked away in one of Mallorca’s most exclusive and picturesque villages, this seasonal property has no shortage of charm.

But while its appeal is undeniable, demand is heavily concentrated in the summer high season – leaving the rest of the year quiet.

This sharp seasonality brings both challenges and opportunities when it comes to revenue management.

To tackle the sharp seasonality and strengthen profitability, our revenue management consultants implemented a series of targeted revenue management actions uniquely tailored to the hotel:

We reduced reliance on tour operators during peak season by automating allotment controls and closely monitoring pickup. This allowed us to black out high-demand dates and shift sales to shoulder periods where demand needed a boost.

To drive more direct business, we incentivised repeat guests with exclusive website-only discounts and clearly communicated the benefits of booking direct over using OTAs.

We tracked the performance of each room type individually, applying dynamic supplements or restrictions in line with real-time booking patterns to optimise yield.

On key dates and for popular room categories, we closed availability on third-party channels to prioritise high-value direct bookings.

Finally, we conducted detailed market research, benchmarking pricing against the competitive set and highlighting where the property could confidently push rates higher during the summer peak.

Our strategy continues to deliver strong, measurable growth across every season.

In 2024, total revenue rose by 20% year-over-year, driven by an 11% increase in ADR during the high season and a 7% boost in RevPAR. Direct bookings also grew to 67% of total sales, up 2 percentage points from the previous year.

So far in 2025, the positive trend continues. Revenue is up 13% season-to-date, with ADR increasing by 8% and RevPAR by 6.6% compared to the same period last year. While the direct booking share dipped slightly by 1%, overall performance shows solid and consistent improvement across all key metrics.

This market-leading boutique resort is nestled in one of the most renowned and exclusive villages in Mallorca, featuring 76 rooms and suites, a private beach, pool, restaurant, gym and large garden.

Impressed? And also want to turn your hotel into a market leader? Get in touch with us today to find out what our revenue management consulting services can do for your property.